CVD Divergence Strategy.1.mmThis is the matching Strategy version of Indicator of the same name.
As a member of the K1m6a Lions discussion community we often use versions of the Cumulative Volume Delta indicator
as one of our primary tools along with RSI, RSI Divergences, Open interest, Volume Profile, TPO and Fibonacci levels.
We also discuss visual interpretations of CVD Divergences across multiple time frames much like RSI divergences.
RSI Divergences can be identified as possible Bullish reversal areas when the RSI is making higher low points while
the price is making lower low points.
RSI Divergences can be identified as possible Bearish reversal areas when the RSI is making lower high points while
the price is making higher high points.
CVD Divergences can also be identified the same way on any timeframe as possible reversal signals. As with RSI, these Divergences
often occur as a trend's momentum is giving way to lower volume and areas when profits are being taken signaling a possible reversal
of the current trending price movement.
Hidden Divergences are identified as calculations that may be signaling a continuation of the current trend.
Having not found any public domain versions of a CVD Divergence indicator I have combined some public code to create this
indicator and matching strategy. The calculations for the Cumulative Volume Delta keep a running total for the differences between
the positive changes in volume in relation to the negative changes in volume. A relative upward spike in CVD is created when
there is a large increase in buying vs a low amount of selling. A relative downward spike in CVD is created when
there is a large increase in selling vs a low amount of buying.
In the settings menu, the is a drop down to be used to view the results in alternate timeframes while the chart remains on current timeframe. The Lookback settings can be adjusted so that the divs show on a more local, spontaneous level if set at 1,1,60,1. For a deeper, wider view of the divs, they can be set higher like 7,7,60,7. Adjust them all to suit your view of the divs.
To create this indicator/strategy I used a portion of the code from "Cumulative Volume Delta" by @ contrerae which calculates
the CVD from aggregate volume of many top exchanges and plots the continuous changes on a non-overlay indicator.
For the identification and plotting of the Divergences, I used similar code from the Tradingview Technical "RSI Divergence Indicator"
This indicator should not be used as a stand-alone but as an additional tool to help identify Bullish and Bearish Divergences and
also Bullish and Bearish Hidden Divergences which, as opposed to regular divergences, may indicate a continuation.
Recherche dans les scripts pour "volume profile"
CVD Divergence Indicator.1.mmAs a member of the K1m6a Lions discussion community we often use versions of the Cumulative Volume Delta indicator
as one of our primary tools along with RSI, RSI Divergences, Open interest, Volume Profile, TPO and Fibonacci levels.
We also discuss visual interpretations of CVD Divergences across multiple time frames much like RSI divergences.
RSI Divergences can be identified as possible Bullish reversal areas when the RSI is making higher low points while
the price is making lower low points.
RSI Divergences can be identified as possible Bearish reversal areas when the RSI is making lower high points while
the price is making higher high points.
CVD Divergences can also be identified the same way on any timeframe as possible reversal signals. As with RSI, these Divergences
often occur as a trend's momentum is giving way to lower volume and areas when profits are being taken signaling a possible reversal
of the current trending price movement.
Hidden Divergences are identified as calculations that may be signaling a continuation of the current trend.
Having not found any public domain versions of a CVD Divergence indicator I have combined some public code to create this
indicator and matching strategy. The calculations for the Cumulative Volume Delta keep a running total for the differences between
the positive changes in volume in relation to the negative changes in volume. A relative upward spike in CVD is created when
there is a large increase in buying vs a low amount of selling. A relative downward spike in CVD is created when
there is a large increase in selling vs a low amount of buying.
In the settings menu, the is a drop down to be used to view the results in alternate timeframes while the chart remains on current timeframe. The Lookback settings can be adjusted so that the divs show on a more local, spontaneous level if set at 1,1,60,1. For a deeper, wider view of the divs, they can be set higher like 7,7,60,7. Adjust them all to suit your view of the divs.
To create this indicator/strategy I used a portion of the code from "Cumulative Volume Delta" by @ contrerae which calculates
the CVD from aggregate volume of many top exchanges and plots the continuous changes on a non-overlay indicator.
For the identification and plotting of the Divergences, I used similar code from the Tradingview Technical "RSI Divergence Indicator"
This indicator should not be used as a stand-alone but as an additional tool to help identify Bullish and Bearish Divergences and
also Bullish and Bearish Hidden Divergences which, as opposed to regular divergences, may indicate a continuation.
EXOFADEEXOFADE is an incredible trading indicator designed help give traders a visual clue of price momentum by combining Linear regression calculations with volume.
Overview:
ExoFade is a unique and dynamic trading indicator designed for both beginner and professional traders. At its core, it uses a sophisticated blend of multiple linear regression analysis, incorporating price, time, and volume-weighted moving average (VWMA) to predict potential price movements. By analyzing these key factors, EXOFade offers an innovative approach to understanding market trends and identifying trade opportunities.
Why It Works:
ExoFade works by calculating a regression line that adapts to market conditions, factoring in both price trends and trading volumes. This approach provides a more nuanced view of market momentum, going beyond traditional price-only indicators. The inclusion of time as a variable offers unique insights into market dynamics, making ExoFade a valuable tool for various trading strategies.
Key Features to Look Out For:
Regression Line: The heart of ExoFade, offering visual cues about the market's direction.
ATR-Based Fade Levels: Utilizes Average True Range (ATR) to set dynamic levels that signal potential reversals or continuation. The indicator comes with three fade levels, which are described below
Alert Conditions: You can set up for alerts for when any of the fade levels have been been reached, indicating potential entry points.
What Are Fade Levels And How To Use The Enter Trades:
The exofade line always moves with price, this indicates that the current volume is moving in the same direction.
When you see the exofade start to move ahead of price. For example, in an Uptrend, if price stops making new highs and you see the exofade line continue moving up ahead of price as price stagnates, this is the first time that you should be expecting pull back or reversal. When the line starts to visibly curve, this when you want to enter the trade.
Sometimes, the exofade line will move just a little bit ahead of price, and sometimes it will move a clear distance ahead of price.
From my experience, the further ahead it moves from price without price keeping up, the higher the probability of a pullback or reversal.
The actual pullback then starts when the exofade line starts to curve, which signifies the start if the actual pullback.
Since we cannot sit and watch for when the line has either moved further ahead enough or started to curve, thats why i figured to use ATR as the best way to measure the distance the exofade line moves ahead of price and the ATR also happens to measure Volatility, which makes it a perfect match.
From forward testing this for months, i have found the pullbacks typically start when the exofade line has moved ahead of price by atleast 2 ATR's. A distance of 2 ATR and above are the ones i consider the best setups. This also marks the point for your stop loss, since 2 ATR is generally used stoploss level.
To catch and sell a pullback in an uptrend, you can set alert for one or both of these alerts
Fade Level 2 abv price - This alert will trigger once Exofade line reached 2 ATR ABOVE price (Just means it has reached 2 atr, dosent mean it has started curving yet)
Curve lvl 2 - SELL - This alert means the exofade line has started to curve at 2 ATR
To buy pullbacks in a downtrend you set the opposite alerts of the one above for curve below price
There are also same alerts for level 3 as well, which is 2.5 ATR
IMPORTANT NOTES - DONT SKIP THIS
For daily and intra-day swings - Use this on 1hr trend upwards - The exofade line much slower on higher timeframe, so when you get a curve on a high time frame, like the 4HR or Daily timeframe, those are excellent signals
For scalpers trading 1hr below - The exofade moves faster on lower timeframes, so more caution should be used with these on lower timeframes , you this with other confluences like a good momentum oscillator oversold/overbought regions StochRSI, MACD etc
EXTRA TIPS
- Since the curve forms slower on higher time frames, it means getting a curve the on daily and weekly chart can help in your trend analysis to detect early signs of potential trend reversals
-I typically pair this with my customized version of Nadaraya watsons envelope ( a free indicator on tradingview) It will further improve your entry and winrate. Biggest advantage is for setting a profit target. In a buy trade for example, you buy the curve below price and set your profit target for the top band of the nadaraya watson envelope. Very efficient for scalping
- Unique areas were you want to pay attention to the exofade is when price enters points of interest, this depending on your trading style could be a
-FVG - fair value gaps
-Order blocks
- Supply / Demand areas
-Volume profile Value area High and Value area Low
The are two scenarios i would like you to be cautious of
1. As with every indicator and strategy, i most definitely wouldn't use this during high impact news.
2. If price is trending very strongly in one direction only, such that even barely gives any decent pull backs at all. Most especially if that strong push is happening between the 4hr to Daily time frame. Do not attempt to counter those trends unless you know what you are doing. Its not advisable.
Instead i'll recommend using the Exofade to catch an entry in the direction of the trade for a continuation.
And Lastly
Since this indicator uses VOLUME data as part of its calculations. It will not work on any pairs that tradingview does not provide volume data for, like Gold. But it will work normally on Gold Futures, since that has volume data
PhantomFlow DynamicLevelsThe PhantomFlow Dynamic Levels indicator analyzes the dynamic volume over the period specified in the Period field. Channel boundaries can be used as dynamic support and resistance levels when trading within a range. The POC level also serves as a level at which the price may react during trend movements. The Period Multiplier parameter affects how many dynamic levels will be displayed. The Accuracy parameter influences the precision of volume calculations.
These levels are crucial for intraday traders as they serve as support or resistance. The Value Area zone includes 70% of the traded volume over the selected period. In other words, it represents the price region where the majority of traders believe the fair value for the asset lies.
The indicator's name, Dynamic Levels, aptly captures its essence. It analyzes trading volume at various price levels, tracking the sentiment dynamics of traders. When the asset's price decreases or increases as a result of trading, the Dynamic Levels indicator displays a new level on the chart. This results in a plotted line on the chart, allowing us to observe the movement dynamics of both the value area and the maximum volume level.
Standard indicators do not provide real-time visibility into level shifts, making the use of the Dynamic Levels indicator a competitive advantage in market trading across any time frame.
We borrowed the volume profile calculation code from @LonesomeTheBlue. Thank you for the work done!
Professional Zones - Institutional Demand and Supply Imbalances
Intro to Supply and Demand Zone Technical Analysis
Supply and demand is an increasingly common strategy among day and swing traders in equity, forex, and the futures markets. The goal of analyzing supply and demand zones is to pre-determine where price action may pivot before that pivot happens, thus giving us an edge over the market. There are many unique charting/trading strategies that fit under the supply and demand umbrella, however we are going to focus primarily on Institutional Zones of Demand and Supply Imbalances, as this is what our TradingView indicator actively displays.
What are Institutional Zones of Demand and Supply Imbalances?
First, let’s break down the phrase above. The first word is ‘institutional’, which is a key aspect in our trading. As a retail trader, you must understand that retail traders (individual traders like you and I) have very little control and very little effect on price action in the major markets. The price action that we see everyday is caused by large institutions and hedge funds buying and selling equities in massive quantities.
This chart displays the price action for ES, which is the S&P500 E-mini futures .
At the time this guide was created, that chart for ES displays the low of this year (2022). You can see major highs and major lows, as well as steep drops and momentous runs.
Price action like this appears random to the naked eye, however it is all controlled by major institutions. These institutions place large buy and sell orders for markets such as the S&P 500 Index which causes these moves.
Our Institutional Demand and Supply Analysis attempts to discover the price zones where institutions have placed their buy/sell orders. Their buy orders create “demand zones”. And their sell orders create “supply zones”. Knowing where these zones exist allows us to anticipate price trend reversals so we can profitably participate in them alongside the major institutions when these key moves take place.
We are looking for areas in the chart where institutions have created major imbalances (more buy orders than sell orders or vice versa) which creates demand and supply zones that impact price action and trend reversals in predictable ways.
What Causes These Supply and Demand Zones?
Understanding that institutions control the price of the markets is crucial for understanding how these zones of supply and demand imbalances are formed, and it can be derived from historical price action.
There are two types of price action, balanced and imbalanced. Balanced price action is flat, consolidatory price action where the overall direction is sideways. Imbalanced price action is an exaggerated move in price either up or down. Now here is the key: institutional supply and demand imbalances are formed when price action goes from balanced to imbalanced. Below is an example of balanced price action .
There are clearly areas of institutional buy and sell orders that are causing price action to oscillate between the areas of demand and supply. The longer price action consolidates and moves sideways, the larger the volume profile will be in this range. In other words, more institutional orders will build up as price remains relatively the same for a longer period of time.
Here is how a demand zone is formed :
Due to bullish CPI news, price action went from balanced to imbalanced by exploding to the upside. This bullish price action filled all of the sell orders and broke past the previous area of supply. Because price moved up so fast, the buy orders did not get a chance to fill, essentially leaving an area with a high concentration of buy orders remaining. Hence, a new demand zone is formed which is shown here .
Our state-of-the-art indicator automatically scans for these historical shifts in price action (balanced to imbalanced) via our supply and demand zone detection formula, and displays them on your chart instantly. Remember the first image sent of blank price action? Here it is below:
The image below shows the exact same chart of ES, however, our advanced Professional Zones - Institutional Demand and Supply Imbalances indicator has been applied to the chart.
Just like that, price action has been transformed from unexplainable chaos to an orderly sequence of demand bounces and supply rejections.
Yes, all of these zones may be charted manually if one were to acquire the knowledge required to chart them by hand, and spend numerous hours going back in time to find all these zones. Additionally, these charts would then have to be constantly monitored and updated, which would require hours of work each day. This powerful indicator automates all of that work to give you more precious time to analyze and trade these zone-driven pivots in the markets.
How To Measure the Strength of Supply and Demand Zones?
The longer the consolidation takes place, the larger the demand/ supply zone will be. This strength is measured by the time frame of the origin of the zone.
Each zone may be formed on a different time frame, the biggest being the 1 Month time frame, and the smallest being the 30 Minute. Each supply and demand zone is automatically labeled based on the time frame from which the zone originated.
The weakest zones are derived from the 30 minute time frame. This means the zone only took two 30 minute candles to form, which is not a lot of time for institutions to place large orders. This means that the bounces and rejections off of these zones will usually be smaller, and usually won’t last more than a few days.
Larger zones such as 1 Day, 1 Week, and 1 Month often cause large swings in the market lasting weeks, months and even years. So pay attention not just to where the demand and supply zones currently appear, but also to the strength of that zone. You can see below that the demand zone that the market bottomed in and reversed out of in 2022 was in fact, a very strong weekly zone.
What is the Significance of Supply and Demand Zone Breaks?
These zones are order-based. This means that a supply zone level doesn’t turn into demand when price action breaks above it, and demand doesn’t turn into supply when price action breaks below it. It is unlike standard trend-based support and resistance levels. If price action breaks below demand by even $0. 01 , all of the buy orders have been filled and the demand must be deleted from the chart (and vice versa for a supply zone ).
While it is possible to play these zone breaks as continuation plays off of current momentous price action, it is unpredictable how far price will go up or down after breaking supply or demand during that leg.
However, in my years of supply and demand experience, I have noticed that if demand breaks, the market will eventually come down to the next viable demand zone . This is because without a pivot caused by an institutional-created demand or supply imbalance, there is often not enough participation to cause a sustainable trend reversal for a long period of time. Below is an example of this:
Above is the 4 Hour chart of TSLA bouncing up off of a demand zone . We call this a bounce in “no man's land”, as there is no major demand bounce to support this reversal to the upside. So in theory, price action should return lower to the next major historical zone of demand before it has a chance of pulling off a solid reversal. Here is what happened:
As you can see above, TSLA did indeed end up heading back down into the next major demand zone before getting a sustainable reversal to the upside. So you may play these supply and demand zone breaks as continuation trades, either long or short, with a price target at the next major zone. Just make sure to use proper risk management and position sizing, as timing the trigger of a price target can be difficult.
How Might I Place a Trade Using the Indicator?
Now that the basics of institutional supply and demand zones have been discussed, there will come a time that this strategy must be actively applied to personal trading with a goal of becoming profitable. Here is a step-by-step process to place a trade using supply and demand paired with an example of a day trade from the 1 minute time frame.
Step 1: Find a highly institutionally traded stock that is currently in supply or demand as shown by our indicator. For example, AAPL:
Step 2: Look for an above-average (exaggerated) volume spike. Because we are in one of the green zones at the bottom of the chart, we know that we are in demand where large institutional buy orders reside. We need to wait for some of these orders to actually fill before we take our trade. This is known as volume confirmation. The color of the volume usually does not matter in this situation.
Step 3: Now that we have a volume spike which is confirmation of large orders being filled, we need more confirmation that the institutional orders are not only a buy, but large enough to actually reverse the current trend.
This is ultimately a judgment call. A few green candles may be good enough to dictate a reversal, or a trend break. It comes down to personal preference and how aggressive you would like to be. Keep in mind, the longer you wait, the more confirmation your trade has, but also, the longer you wait, the greater the risk of missing the new trend. In this example, we will use a trend line to confirm our trend reversal.
Step 4: Enter the trade. Now that you have proper demand confirmation, you may place your trade. Be sure to determine your stop loss, price target, position size, and all other risk management factors along the way.
In this example, AAPL ran all the way up to supply before rejecting; making for a perfect demand to supply call trade. Also, more short trade entries could have been taken based off of the multiple supply rejections AAPL had.
The Bottom Line
There are many ways one may go about trading the stock market. However in my years of trading and teaching, there has never been a strategy that has not only changed my career, but improved the trading careers of my students, more dramatically than Institutional Zones of Demand and Supply Imbalances.
Though charting new zones and deleting broken ones everyday was time consuming and repetitive, the results of trading these zones made it well-worth the hours of charting. However, after months of development and fine-tuning, the painful charting process has been automated by this powerful indicator, completely replacing the tedious charting work for myself and my students.
While numerous other indicators include the name “Supply and Demand Zones”, we believe that no supply and demand indicator remotely this advanced and accurate available on TradingView. I am very blessed to finally bring this revolutionary tool to the market.
Introduction to the Aurora Demand and Supply Indicator for TradingView and its Functionality
This page is dedicated to providing a thorough walk-through of our Professional Zones - Institutional Demand and Supply Imbalances indicator. The settings functionality, customizability, and purpose will be discussed to give you an in-depth understanding of the indicator. Understanding the purpose of the different functions and settings is crucial to utilizing this powerful tool at its full potential.
First Look Upon Indicator Addition
After purchasing the indicator, your chart may initially appear cluttered, zoomed out, and hard to read. But do not worry, it just means the indicator settings must be fine-tuned to optimize your experience. Tt may appear overwhelming. However this page will discuss each major customizable setting and the functionality behind it to streamline your TradingView set up.
Filter Options Settings Category
This is the first customizable feature that appears when accessing the settings of the indicator. What Filter Zone Ranges does is allow you to filter the range at which zones appear both above and below the current asset price. With this setting unchecked, every single demand and supply zone within the 5k candle limit (or 20k limit if you have a premium TradingView account) will appear on your chart. This causes chart clutter which limits the visibility of price action.
If you have this setting activated, you can choose exactly the range of zones visible to you. This range is percent based and is measured both above and below the current market price. For example, if you activate Filter Zone Ranges and set the Filter Percentage at 7%, only zones within the range of 7% above, and 7% below the current asset price will be shown.
Demand/ Supply Zone Options Settings Category
The next two categories contain the majority of the customizability for supply and demand zones. The first option in both the Demand/ Supply Zone Options is Create Demand/Supply Zones. This toggle is very straight forward, you may choose whether or not to display all demand zones, or all supply zones.
The next two options are Demand/ Supply Zone Border and Demand/ Supply Zone Fill. Again, these are straight forward. The border setting allows you to edit both the color and opacity of the zones’ border lines. The fill setting allows you to edit the color and opacity of the interior of the supply/demand boxes.
Following the first pair of visual settings, you will see Demand/ Supply Zone Box Offset. This allows you to toggle how much the indicator offsets each zone from its origin point. In other words, move it to the left or right from the point in time at which the zone was created. The 0 offset is the base setting which is actually a slight offset to the right of the origin point to ensure that the candlesticks remain unobstructed visually.
After the offset options, you will find Demand/ Supply Zone ERC Multiple. This is a key setting which inputs the value our formula utilizes to scan the areas of institutional supply and demand imbalances. Unless you are extremely experienced with supply and demand analysis or you are running backtesting, it is highly recommended this value is left at ‘2’ for both the demand and supply options.
The next two options you will see in your indicator settings are Extend Demand/ Supply Zone and Demand/ Supply Zone Size. This feature allows you to customize exactly how far your zones will extend from the point of origin into the future.
The three options on the drop down menu are Extend, Fixed, and Dynamic. Each of these options extend your zones in a different fashion. It is important to note that the value inputted in the size option is the amount of units the zones will extend to the right for both Fixed and Dynamic options. The larger this input is, the further out the zones will extend into the future, and vice versa.
The final setting in the Demand/ Supply Zone Options category is Broken Zones to Keep and Broken Demand/ Supply Zone Fill. The Broken Zones to Keep input allows you to see recent supply or demand zones that have been broken and deleted from your chart. This may be useful for a trader in a few different ways. The Broken Demand/ Supply Zone Fill setting allows you to customize the number of broken zones displayed as well as their color and opacity. The most prominent example of this option’s utility is for traders that do not observe price action during the entirety of the market open.
If an individual left their charts for a few hours and missed a demand break, it may give the illusion that there was never a demand there and price action has been in “no-man's land” all day. However if that individual inputted ‘1’ in the Broken Zones to Keep setting, they would be able to see that a demand has broken. This may be useful as the trader may have an altered sentiment after knowing that a zone did in fact break.
Note: the value inputted is the amount of previously broken zones that will appear on your chart. For example, if the value ‘3’ is inputted, the three most recently broken zones will appear on your chart.
Time Frame Options Settings Category
Time Frame Options Settings allows you to toggle which supply and demand zones appear on your chart by time frame. For example, if you are analyzing a chart on a larger time frame such as the daily or weekly, the small 30 minute and 45 minute zones will often clutter your chart. By deselecting the weaker and smaller time frame zones, it will clean your chart up, allowing you to only see the zones that assist your analysis.
However the first two options in the category are unique.The first is Show Forming Zones. This option is extremely useful if you are watching price action play out live, when seeing the possibility of a supply or demand zone forming may be of benefit during your day trading. By toggling this setting ON, you will see all possible supply and demand zones forming in real time. However, this could cause clutter if multiple zones are forming at once in which case, toggling it off may be more beneficial.
The second option in the Timeframe Options category is the Show Zones Inside toggle, which controls the table at the top right of your screen (you may get rid of this table by deselecting tables in display settings).
This setting simply is a “yes” or “no” as to whether or not the table located at the top right of your screen will display the number of zones price action is currently sitting in. This setting is useful as zones may sometimes pile up on top of one another, making it hard to know exactly how many zones price action is currently sitting in.
Gap Options Settings Category
Just below the Timeframe Options category, is the Gap Options category. Gaps appear when two daily candles highs and lows do not overlap. These are often created when a catalyst is released into the market overnight causing a large move, resulting in a “gap” up or down the next morning.
A Gap often forms due to a strong move to the upside, and the indicator highlights this gap with a gray box. Gaps are important to many traders as there is often a large lack of liquidity inside the gap area, which often acts as a magnet that attracts future price action to fill it. If toggled on, the indicator displays the gap among the supply and demand zones seamlessly. The rest of the settings for this category are options to customize the color, opacity, size, and offset. These have the same effect as the options in the Demand/ Supply Zone Options category.
Text Options Settings Category
The final category in the indicator input settings is Text Options. This category allows you to toggle zone labeling on or off, and to specify how you would like the zone labels to appear. It’s strongly recommended that zone labeling is left ON because knowing the time frame a supply or demand zone originated from is a massive indicator of its strength. Top right alignment causes labeling such as “3H” to appear at the top right of each zone.
Indicator Data Limitations
There are a few limitations of TradingView which impact the Professional Zones - Institutional Supply and Demand Imbalances indicator. The first is the data TradingView provides to its users. With a basic TradingView account, a user only has access to 5,000 candles of data. So if a user is on the 1 minute time frame, that user can only see 5,000 candles before that current point. This is important because our advanced indicator scans historical price action that has formed supply and demand zones and displays it on your chart. This means that if a user is on a 1 minute time frame chart, they will only be able to see zones formed within the last 5,000 candles. Older supply and demand zones can not be displayed. However if a user has the Premium TradingView subscription, they can access up to 20,000 candles, which greatly increases the potential zones the user may see on the smaller time frames.
To counter this, we strongly recommend checking the larger time frames before starting your trading day, as there could be an old zone lurking behind the scenes. Once you spot it on the 30 minute time frame, for example, you may easily take note of the demand zone and its location.
The Bottom Line
This indicator has been intricately and powerfully designed to not only display institutional supply and demand imbalances more accurately and efficiently than any other TradingView indicator, but it has also been designed to give the user full control. Full control means the user has the ability to customize the appearance and inputs, as well as toggle specific objects visible to the trader.
We have meticulously designed the Professional Zones - Institutional Supply and Demand Imbalances indicator to be extremely valuable as a stand-alone strategy, as well as versatile enough to incorporate multiple other trading strategies on top of supply and demand .
However, in order for this indicator to be utilized by you at its full potential, it is important that you understand all of its features, capabilities and configuration options before you dive into trading.
Mayfair Volume Stochastic 1.0This indicator takes some of the simple tools such as RSI and Stochastic, and provides information of the macro picture for both trending and non-trending markets;
The Relative Strength Index part of the indicator is standard and is used in technical analysis that ranges between zero and one (or zero and 100 on some charting platforms.
This indicator has the ability to change between multiple settings; Elders Force Index, Money Flow Index, On Balance Volume & Price Volume Trend.
The Stochastic part is measuring not only the conventional Stochastic K – but also the accumulation/distribution and this is used with the volume bars at the bottom.
All are uniquely combined to give “False bar” signals when certain criteria is met – this is visualised by the Green turning Red on the upper and lower boundaries of the indicator. When Red, the trend is false, when green the trend is trending.
It’s a unique view of the market, confirmation of trend (false or not) inclusive of the volume profile across the bottom. Colour set to Red (Bearish), Green (Bullish) and Grey is undecisive volume.
VWAP OscillatorToday I'm proposing a simple VWAP oscillator script to trade buy and sell waves more easily.
You trade this similar to how you trade Awesome Oscillator, so if you want an explanation just look up YT videos.
In addition to that, this will also show volume squeezes, please note that this is a makeshift way and not real volume squeeze phenomena of volume profile and tape. None the less, it is quite good at allowing you to ride out good trending waves and locate weak price action due to volume squeeze. You can turn off bar coloring from settings if you don't want this.
For ease of reading, I've also applied Allenstars Dynamic zones on this indicator so you can easily locate where the reading is entering in long and where it is in sell, this is compared to selected sample size. I've already selected the most common setting for that, so you don't really need to fiddle with it unless you find something better.
This indicator can be used to trade divergences as well, in fact, I feel it is better for that compared to RSI/MACD, the usual suspects.
Past performance is not assurance of future performance and this idea is published for only educational purposes, author taken no responsibility for your profit or loss.
Pre-Market Volume ProfileThis indicator displays the pre-market volume (note: without the post-market of the previous day).
Unusual pre-market volume often indicates that institutional market makers are moving the market, which is a good sign for unusual high price movement.
The indicator helps me to spot stocks, if a pre-market gap is confirmed with enough (unusual) volume.
You can define, what "unusual" means by you, by adjusting the SMA length and the SMA multiplier.
The default is a length of 21 bars and a 2.5 multiplier, meaning I'm interested in a stock, if the pre-market volume exceeds the average pre-market volume by 2.5 times.
LONG MICRO-VOLUMES 3.0This script - when plotted below the chart - shows most important LONG VOLUMES during the sessions.
Volumes often anticipates turning points and/or show important support levels.
My advice is to plot volume profile too, to complete the view.
The script works with stocks, etf , commodities , futures , forex, spreads.
I use to trade with this tool looking at different time-frames in the same moment.
SHORT MICRO-VOLUMES 2.0This script - plotted on a panel above the chart - shows most important SHORT VOLUMES during the sessions.
Volumes often anticipates turning points and/or show important resistance levels.
My advice is to plot volume profile too, to complete the view.
The script works with stocks, etf , commodities , futures , forex, spreads.
I use to trade with this tool looking at different time-frames.
LONG MICRO-VOLUMESThis script - when plotted below the chart - shows most important LONG VOLUMES during the sessions.
Volumes often anticipates turning points and/or show important support levels.
My advice is to plot volume profile too, to complete the view.
The script works with stocks, etf, commodities, futures, forex, spreads.
I use to trade with this tool looking at different time-frames, in the same moment.
Angled Volume Profile [feeble]BETA VERSION
this indicator maps volume as brightness over an SMA. the brightness then fades over time.
It draws 30 bands, so you will need to load multiple instances to get a large picture.
Configure the settings, then copy and paste the indicator, modifying only the vertOffset attribute each time
Patience, bruh. This takes a long time load. Chrome runs it faster than Firefox. ¯\_(ツ)_/¯
Please let me know if you can think of how to optimize it.
Feedback is appreciated is you use it :)
sample with 6 instances:
settings:
useLog: enable if you are using a log graph
rowHeight: resolution of rows.
vertOffset: normally if you have 5 instances, the values will be -2,-1,0,1,2
fadeAmt: how long it takes for volume to fade once it is picked up
volumeMin and Max: the volume range displayed.
volumeResolution: time resolution at which volume data is collected - this is why the fadeAmt is so high, and why the graph runs out of data after a period back
EMA length: its Actually SMA but I wrote it wrong. eg. for a 20 day period on a 15min chart you go ( 20 days x 24 hrs x 4 quarter hours = 1920) - I hope to automate this in a future version :p
FHX Bands (VWMA BB)This study is an optimized version of Bollinger Bands based on volume weighted data points: more volume on a bar gives those prices a higher impact. FHX bands base on the assumptions of auction market theory (e.g., as does volume profiling). Bollinger Bands implicitly assume a uniform probability mass function for data points and consider only the - somewhat arbitrary - close price. In contrast to this, FHX bands take all four available data points into account (OHLC) and use the volume at each candle* to define a probability mass function in order to compute mean and standard deviation.
As an indicator, FHX bands could be used in the same way as BB to facilitate or confirm Break-Out trades and identify strong momentum moves. Settings for the standard deviation multiplier should be interpreted as follows (following the 68–95–99.7 rule):
x standard deviation set to 1: ~32% chance that a move outside the bands is by chance
x standard deviation set to 2: ~5% chance that a move outside the bands is by chance
x standard deviation set to 3: ~0.3% chance that a move outside the bands is by chance
This however assumes a fairly solid period of consolidation beforehand (visible through notable contraction of the bands) and a normal distribution of values within that consolidation period. Therefore users need to experiment within their time frame in order to identify a Length setting that suits their needs. Personally, I set Length to 21 or lower, depending on my targeted time frame. Note that the indicator does not test for normality in any way; you can, however, use a quick visual test using the fixed range volume profile indicator to increase its reliability.
Good luck and mind your risk
-fhx
* of course tick data would be the real deal, but we work with what we have
The Real Koops - Darvas Box v2.1What Is the Darvas Box?
The Darvas Box strategy was developed by Nicholas Darvas. Aside from being a well known dancer, he began trading stock in the 1950s. Based on his success in trading, he was approached to write a book on his strategy. The book, “How I Made $2,000,000 in the Stock Market,” outlines his approach together with “You can still make it in the market”.
Darvas Box Implementation
The intend behind the Darvas box was for it to be used for rapidly rising technology stocks, and in fact it was never tested or used by Darvas for Commodities. This implementation of the Darvas Box was created specifically in support of Commodity Trends, which tend to be very volatile over long periods of time. The main ones for an uptrend (e.g. longing the market. Shorting the market would work exactly the opposite):
1. When the price of a rapidly rising stock (pls note rapidly rising is key - we are not interested in a sideways trend) is reaching a resistance point, which is does not surpass for three or more consecutive days, that point represents the top of the box.
2. If, after falling from the upper limit, the stock reaches a downward resistance point which it does not penetrate for three of more consecutive days, that level represents the bottom of the box.
3. A stock is in a rising trend when it is in the topmost box. If it remains there, its price fluctuations should be ignored, and the stock is a HOLD.
4. If the price of the stock moves above the top of this topmost box, this stock becomes a BUY. A 10% stop loss should be set at the breakout.
5. Having formed a new higher box, if the price falls below the bottom into the stop loss area of this box, the stock is a SELL.
6. There is no reason to HOLD or BUY a stock that is not in its topmost box.
7. In case a candle pierces out of the top of the box while establishing the bottom of the box, the box is invalidated.
8. If the Box is broken out of on the top, the color is Yellow. If the Box is broken out of on the bottom, the color is Blue.
9. If a Box is being formed in the current timeframe, it is colored Grey, and has clear Buy and Stop Loss indicators so that the user knows how to configure his/her Broker.
10. All parameters for the implementation have been made configurable, so that users can tweak both the presentation of the boxes (background color, border width and style) as well as the configuration of the breakout %, stop loss %, textual presentation and box validation e.g. display arrows where the top and the bottom of the box was drawn, draw boxes only from All Time High back test after a configurable number of years, the number of boxes to be drawn from the last box etc.
11. In addition, two other key principles are critical for application of the indicator:
1. The stock’s price must be at or above its ATH for the past 3 years or more.
2. The volume profile needs to indicate a rapidly growing volume or insider buying (e.g., a volume spike).
How is this implementation different from others?
This implementation holds fully true to the way Darvas described his Darvas Box in his books, but applies it to Commodities. It is in addition, highly configurable, so that it can be used to debug itself (at which points have box boundaries been drawn), and it provides Buy/Sell/Stop Loss levels for entries and exits – again, highly configurable, with defaults set as per Darvas’ books.
Finally, it works over daily to quarterly timeframes (it is not suitable for high frequency trading).
How to use this Indicator?
First, use it with the default settings. Once a grey box is drawn for the current timeframe for the commodity you are interested in investing in (based on Darvas principles outlined above), this box will indicate a Buy level and a Stop loss level based on the principles described above, allowing you to make a purchase decision for that commodity asset accordingly. Then, stay the trade. As the stock continues to move up, more Darvas Boxes will be drawn with new Buy levels and stop loss levels – either add to your position or keep the original investment in play. Once a trend reversal occurs, the Stop loss level will be used to get you out of the trade.
Second, once you are comfortable with this trading methodology, you can refine the script to use a color scheme as you prefer for your Tradingview, as well as set buy, stop loss and sell levels, aligned with your own level of comfort to deal with volatility.
If you wonder why a certain box was drawn at certain levels, you can use the green and red arrows to show the levels based upon which the boxes were drawn.
Absolute KRI [vnhilton]The Kairi Relative Index (KRI) is a volatility momentum oscillator that plots the distance of price away from a moving average. An increase or decrease in distance is a sign of increasing/decreasing momentum respectively, & a relatively stable distance would mean momentum is also stable. An increase in momentum is a sign of strength, price extending away from the moving average, & has to revert back to the mean sooner than later, which is why some traders look to take profit or contrarian trades with this increase in momentum.
This indicator plots the KRI in absolute values, meaning that the value can never be lower than 0, helping to see momentum clearer, with colours to still give information on whether or price is in an uptrend or downtrend if it's above/below the moving average respectively. This indicator also includes a standard deviation band, to help spot abnormal distances between price & the moving average, which may be more worthy of attention as that's a sign of significant activity that's caused momentum.
The chart snapshot image above shows ATXI moving ~70% from its open on 30/09/22. From open to midday, we can see price extend away from the 21 EMA (impulses) several times, with retracements back towards the EMA following right after. Let's look at 3 main examples of price creating new highs.
- At (1), price attempts to make a new high, & but meets historical resistance, causing price to retrace back to the mean. On the indicator, you can see momentum failing to be higher than previous momentum after making new highs, which shows that historical resistance, alongside the whole $10 dollar level, were significant in causing a reversal (you can see sell volume using the periodic volume profile (pvp) for each bar). The indicator also shows momentum extending further than the standard deviation band, which is mostly expected as it's right at the open & the stock was in play at the time. The indicator falls back under the standard deviation band which confirms the retracement, as it's showing slowing of momentum.
- At (2), the indicator indicates significant activity again after exiting the standard deviation band, with the impulse slowing down right the resistance, testing it several times to satisfy passive sellers, until aggressive buyers were able to push the price higher. This confirmed new high that followed afterwards didn't exhibit the same momentum as (1), which means that the overall trend is slowing down, meaning that traders should be more cautious of trying to buy into new highs (i.e. take profit earlier, & look for reversals).
- At (3), the indicator shows significant activity again as price heads towards making a new high. As new highs were created, we can see that the momentum causing this breakout is lower than the previous momentum at (2) & (1), again showing that the overall trend is slowing down. The whole $12 dollar level, & FOMO/greed buyers being trapped at the wick (you can see buy volume using the pvp indicator), allowed for short-term resistance for a mean reversion play.
VWAP From Multiple Sources With Cloud & Percentage GapVWAP CLOUD FROM CLOSE, OPEN, HIGH & LOW SOURCES WITH CLOUD & PERCENTAGE GAP
VWAP stands for volume weighted average price and shows the average price of buys/sells based on volume traded across the current session. This VWAP is based off of the Daily session.
***HOW TO USE***
Use the purple cloud between the VWAPs as your entry points as price will typically bounce from that cloud area.
The Yellow Line is the VWAP using the close price as a source.
The Green Line is the VWAP using the open price as a source.
The Blue Line is the VWAP using the high price as a source.
The Purple Line is the VWAP using the low price as a source.
When price is above the VWAP cloud, the background will paint green because the trend is bullish.
When price is below the VWAP cloud, the background will paint red because the trend is bearish.
In the bottom right hand corner, three is a table that will show you the current percentage gap between current price and the VWAP using close as the source.
All sources and colors can be easily switched in the settings menu.
***MARKETS***
This indicator can be used as a signal on all markets, including stocks, crypto, futures and forex.
***TIMEFRAMES***
This vwap indicator can be used on all timeframes but is calculated using the daily session.
***TIPS***
Try using numerous indicators of ours on your chart so you can instantly see the bullish or bearish trend of multiple indicators in real time without having to analyze the data. Some of our favorites are our Auto Fibonacci, Volume Profile, Directional Movement Index, Momentum, Auto Support And Resistance and Money Flow Index in combination with this VWAP Cloud. The other indicators all have real time Bullish and Bearish labels as well so you can immediately understand each indicator's trend.
ToTitans : Buy/Sell HHVWhat is it
It is a volume profile indicator base on y axis. It will show you when the buy/sell volume dominate the market
Differentiation
No one has done this before to calculate buy/sell volume indicator in this fashion
This indicator has been used in AJ Jim class for "Type 2" approach
Suitable for
Intra Day Trading (20m-2h)
TFEX:S501!
"PM me to obtain access"
EulerMethod: V-ProfileVolume profile
50 rows | 50 рядов
Depth — Depth of history | Глубина истории
Range ± — Floating range | Плавающий диапазон
∟ % — Floating range % | Плавающий диапазон %
Amp — Amplitude of histogram | Амплитуда гистограммы
Minimum right margin: 10 bars | Минимальное правое поле: 10 баров
Moving Candle VolumeShows which part of the candle was executed with the highest volume.
Different from Candle Volume Profile because more useful for indicators and scripts
VERY IMPORTANT TO CHANGE THE SETTING BASED ON THE TIMEFRAME.
Does not work on any timeframe lower than 20 minutes
Nifty Volume profile + VWAP + EMA The script picks up nifty stocks with their current respective weights and plots a Volume Weighted Average Price line along with 2 EMAs and an alert when the EMAs cross over.
You can customize the script for EMA lengths and to remove alert. Basic utility of the script is to analyse volumes driving the Nifty 50 index.
Credits to @daytraderph and his script (Custom Volume) who's code I used to build this script. Also thanks to my friend @Varun who helped me code it.
Underworld Hunter Backtesting AlgorhitmThis strategy is built to prove the profitability of my Underworld Hunter indicator . It tests two different strategies. I won't be going into the calculation again since it is part of the original script. I just made a few adjustments.
First one is clearly visual. It plots slimmer twin-coloured lines now and has a different colour for every extreme level. Second is less obvious - I switched Relative Strength Index for Commodity Channel Index.
Extreme levels are as follows: green 100 -► 120, yellow 120 -► 140, orange 140 -► 160, red 160 -► 180 and purple above 180, I will have a special separate algorithm for testing optimal CCI levels someday, in this script, these values are only meant to help you with manual operations and do not influence results of the strategy in any way.
#Trending strategy
The trending strategy opens a position whenever the price leaves the bands and holds it until two consecutive bars are closed within the bands. The picture shows one winning position that hasn't yet been resulted. It also shows a few fakeouts. For this strategy, you want to keep the length below 110, the deviation should be below 2 and you probably want to play lower timeframes.
#Within the bands
The second strategy is pretty much the opposite. It opens a position when the price reaches outer bands and holds it until two consecutive bars are closed within the bands and current bar closes below previous bars low in case of long. It is working on hourly timeframes and you need higher length and deviation to succeed. The picture shows a few positions on EURUSD. Each of them is profitable but would be much higher if you closed it manually when it was time. You need to enable this strategy, which automatically disables the other one.
When using my script, you need to bear in mind that the first strategy doesn't detect optimal levels to close the price. A trend is often followed by a less volatile and boring correction which causes bands to shrink and lower your profits if you don't close manually as it will take longer till bands are reached.
On the other hand, second script literally has no stop-loss. As long as the price is outside the range, it will never close which will cause major drawdowns, unless you control the trade manually. CCI is here to help you with both.
I also recommend combining this with Market Profile (on TW, there is only Volume Profile, which can be used in a similar way) and trading day theory (trending with multiple distributions, trending day, normal day, a variation on a normal day, non-trending day or neutral day). Always keep in mind that it is up to traders to be profitable, indicators can support a good trader, but they will not fix a bad one.
Bitcoin Real VolumeBitcoin’s Real Volume
An accurate read on the change in Bitcoin’s volume profile over time.
Based on 2019 reports by Bitwise and Alameda Research.
Please see the script code notes for assumptions and details on data selection.
Follow me for more information on this script.
Baseline-C [ID: AC-P]The "AC-P" version of jiehonglim's NNFX Baseline script is my personal customized version of the NNFX Baseline concept as part of the NNFX Algorithm stack/structure for 1D Trend Trading for Forex. Everget's JMA implementation is used for the baseline smoothing method, with optional ATR bands at 1.0x and 1.5x from the baseline.
NNFX = No Nonsense Forex
Baseline = Component of the NNFX Algorithm that consists of a single moving average
Baseline ---> Meant to be used in conjunction with ATR/C1/C2/Vol Indicator/Exit Indicator as per NNFX Algorithm setup/structure. C1 is 1st Confirmation Indicator, C2 is 2nd Confirmation Indicator.
JMA (Jurik Moving Average) is used for the baseline and slow baseline.
A slow baseline option is included, but disabled by default.
The faint orange/purple lines are 1.0x/1.5x ATR from the Baseline, and are what I use as potential TP/SL targets or to evaluate when to stay out of a trade (chop/missed entry/exit/other/ATR breach), depending on the trade setup (in conjunction with C1/C2/Vol Indicator/Exit Indicator)
This script is heavily based upon jiehonglim's NNFX Baseline script for signaling, barcoloring, and ATR.
SSL Channel option included but disabled by default (Erwinbeckers SSL component)
POC (Point of Control) from Volume Profile is included/enabled by default for both the current timeframe and 12HR timeframe
03.freeman's InfoPanel Divergence Indicator was used a reference to replace the current/previous ATR information infopanel/info draw from jiehonglim's script. I'm not sure whether I like the previous way ATR info was displayed vs how I have it currently, but it's something that is completely optional:
Specifically: I am tuning this baseline/indicator for 1D trading as part of the NNFX system, for Forex.
DO NOT USE THIS INDICATOR WITHOUT PROPER TUNING/ADJUSTMENT for your timeframe and asset class.
Note about lack of alerts:
Alerts for baseline crosses (and other crosses) have been purposefully omitted for this version upon initial publication. While getting alerts for baseline crosses under certain conditions/filtered conditions that eliminate low-importance signals and crossover whipsaw would be great, it's something I'm still looking into.
SPECIFICALLY: There are entry, exit, take profit, and continuation signal components in relation to the Baseline to the rest of the NNFX Algorithm stack (ATR/C1/C2/Vol Indicator/Exit Indicator), including but limited to the "1 candle rule" and the "7 candle rule" as per NNFX.
Implementing alerts that are significant that also factor in these rules while reducing alert spam/false signals would be ideal, but it's also the HTF/Daily chart - visually, entry/exit/continuation signal alignment is easy to spot when trading 1D - alerts may be redundant/a pursuit in diminishing returns (for now).
//-------------------------------------------------------------------
// Acknowledgements/Reference:
// jiehonglim, NNFX Baseline Script - Moving Averages
//
// Fractured, Many Moving Averages
//
// everget, Jurik Moving Average/JMA
//
// 03.freeman, InfoPanel Divergence Indicator
//
// Ggqmna Volume stops
//
// Libertus RSI Divs
//
// ChrisMoody, CM_Price-Action-Bars-Price Patterns That Work
//
// Erwinbeckers SSL Channel
//
